The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1887-12-15

consequences Tho public treasury, which
should only exist as q conduit con-
veying the peoples tribute to its L.
climate objects OF expenditure, be-
comes boarding place for money need
lessly withdrawn from trade and the peo-
PIES use, thus crippling our national ener-
giles. suspending our countrv's develop
ment, preventing investment In productive
enterprise, threatening financial disturb
ance and inviting schemes Of public plumber.
This condition OF our treasury is not al to-
gether new; and it has more than once OF
late been submitted to the peoples repre-
sentatives In the congress, who alone can
apply remedy. And vet the situation still
continues, with aggravated incidents, more
than ever presaging financial convulsion
and widespread disaster: It will not do to
neglect this situation because It's dangers are
not now palpably imminent and apparent
They exist nome the lees certainly, and await
the unforeseen and unexpected occasion,
when suddenly they will be precipitated
upon ua On June 80, 1885, the excess of
revenues over public expenditures after
complying with the annual requirement. of
the sinking fund act was $17,s59, 735. "a;
during the year ended June 30, 1885, such
excess amounted to $49, $40. 20; and
reached $55.567, $40 So The annual con-
tributions to
during the three years above specified,
and me as sdgssa'' rom TO $'s tSs
calling in for that purpose out.
standing per cent bonds Of the govern
ment During the six months prior to June
80. 1887, the surplus revenue had grown so
large by repeated accommodations, and it was
feared the withdrawal OF this great sum of
money needed by the people would so affect
the business of the country, that $79, 1884,
100 of such surplus was applied to the nav
ment OF the principal and interest Of the 5
per cent bonds still outstanding, and which
were then payable ut the option of the gov.
ernment The precarious condition Of
financial affairs among the people still need
ing relief, immediately after June 80, 1887.
the remainder Of the 3 per cent bonds then
outstanding. 4mounting with principal and
interest to $18. 877, 900, was called in and
applied to the sinking -fund contribution for
the current fiscal year. Notwithstanding
these operations of the treasury department.
representations Of distress in business cir
cles not only continued but increased, and
absolute peril seemed at hand In these cir
cumstances the contribution to the sinking
fund for the current fiscal year was at once
COMPLETED by the expenditure Of 1927. 1884,
not yet due bearing 4 and lie per cent inter
est, tho premium paid thereon averaging
about "A per cent for the former and
per cent for the latter In addition
TO this the interest accruing during
the current year upon the outstanding bond
some extent anticipated. and banks selected
as repositories OF public money were per-
m1tted to somewhat increase their deposits
While the expedients thus employed to re-
lease to the people the money lying idle in
the treasury served to avert immediate dan
ger: our surplus revenues have continued to
accumulate, the excess for the present year
amounting on Dec to $55. 258. 7O1. 10,
and estimated to reach 81 l3, OOO, 900 on
June 30 next, at which date it is expected
that this sum, added to prior accumulat:ons,
Will swell the surplus In the treasury to
$l4O.OOO,O00 There seems to be no assur-
ance that. with huch . withdrawal from use
OF the peoples circulating medium, our
business community may not in the near fu-
ture be subjected to the same distress which
was quite lately produced from the same
cause: And while the functions of our ma
tlonal treasury should be few and simple
and while it's best condition would be
reached, believe, by its entire dlsconnec-
lion with private business interests, vet.
when by perversion OF ito purposes, it idly
MONEY UsELEssLY sUDTRACTED
from the channels of trade, there seems to
be reason for the claim that some Legitimate
means should be devised BY the
government to restore in an emer-
gency. without waste or extravaganza,
SUCH money to its place among the people.
II such an emergency arises there now ex-
lists no clear and undoubted executive power
OF relief Heretofore the redemption of 8
per cent bonds, which were payable at che
option OF the government, has afforded q
means Tor the disbursement of the excess Of
our revenues; but these bonds have all been
retired, and there are no bonds outstanding
the payment Of which we have the right to
insist upon. The contribution to the sinking
fund which furnishes the occasion for ex-
penditure In the purchase of bonds has
already been made for the current year. 90
that there Is no outlet in that direction. In
the present etate Of legislation the only pre-
tense OF any existing legislative power to
restore. at this time, any part of our surplus
revenues to the people ty its expenditure
consists In the supposition that the secretary
OF tfe treasury may enter the market ana
purchase the bonds OF the government not
yet due at rate Of premium to be agreed
upon. The only provision of law from " hich
such power could be derived ts found in an
appropriation bill passed a number Of years
ago; and it is subject to the suspicion
tnot II was intended ~ temporary and
limited In its application, instead OF con-
ferring a continued discretion and author
ity. No condition ought to exist which
would justify the grant of power to 4 sinole
ofdctal, upon his Judgment of it's necessity.
to withhold from or release to the business
OF the people, In an unusual manner. money
he!d 10 the treasury, and thus affect. at bis
WI! the financial situation Of the country:
and II It IL deemed wise to lodge In the sec.
Rotary OF the treasury the authority in the
present 5uncture to purchase bonds. II
should be plainly vested ana provided as far
a. possible with such checks and limitations
~ will define this officials right and disore-
ton. and at the same time relieve him from
undue responsibility. In considering the
question OF purchasing bonds % q means OF
restoring to circulation tho surplus money
accommodating in the treasury, It should be
borne In mind that premiums must of course
be paid upon such purchase that there NAV
be large part these bonds held as invest
ments which cannot be purchased at anv
price, and that combinations among holder,
who are willing TO cell, may UNREASONABLE
enhance the cost of such bonds to the GOV.
ernment It has been suggested that
THE PREsExT BONDED DEBT
might be refunded Ut . less rate Of iutereat
and the difference between tho old and, new
security paid In cash, thus finding use fol
the surplus IN the treasury. The success 81
THIS plan, 1t u apparent, must depend upon
tho voliaon Of the holders OF the nresent
bonds; and II 10 not entirely oertain that an
1nduN0HnAnk WhiNh vnmaH IA a0o..IS 49,